Module 1: Introduction and Steps 1 and 2
We define market segmentation analysis, explain why it is the basis of marketing planning, and why it informs both strategic and tactical marketing decisions. We provide an overview of the ten-step process in market segmentation analysis. In Step 1, we explain the requirements for market segmentation, helping learners decide whether their organisation is ready to segment. In Step 2 we specify the ideal target segment, including segment evaluation criteria.
Module 2: Steps 3 and 4
In Step 3,we describe collecting data and define the segmentation variables and criteria, and discuss different sources of data. In Step 4 we explore the data and discuss data cleaning and how to pre-process categorical and numeric variables. We also demonstrate how to use R, to assist you with exploring the data.
Module 3: Step 5
In Step 5,we extract market segments and group consumers using distance-based, hierarchical, and partitioning methods; hybrid approaches; and model-based methods. We also explain data structure analysis.
Module 4: Steps 6 and 7
In Steps 6 and 7, we profile and describe segments. We use traditional approaches as well as visualisation techniques to identify key characteristics of market segments. In Step 7 we develop and visualise a complete picture of market segments; this includes testing and predicting segment differences in descriptor variables.
Module 5: Steps 8, 9 and 10
In Step 8, we select the target segments including the tasks targeting decision and market segment evaluation. In Step 9 we customise the marketing mix. We also discuss the implications of market segmentation for marketing mix decisions concerning product, price, place,and promotion. Finally, in Step 10, we evaluate the success of the segmentation strategy, and stability of segment membership. We conclude with a discussion of segment hopping and segment evolution.